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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Carl Worth who wrote (4732)2/20/2007 10:38:18 AM
From: TimF  Read Replies (1) of 5205
 
If you already own the shares and you write calls, that call writing is bearish (although if your really bearish you'd probably sell). But a buy write is neutral to bullish. Not strongly bullish (or you would just buy shares or calls), but its still more bullish then bearish. You do best (on OTM calls) if the stock goes up (if you want to keep the stock, that is itself bullish, and you do best if the stock goes up to just under the price where it would be called away) If you think a stock is likely to go down you don't want to do a buy/write.
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